Oil prices fell on Wednesday following data published by the American Petroleum Institute showing inventory growth of 2.5 million barrels and concerns over high US interest rates.
International benchmark Brent crude traded at $81.75 per barrel at 10.18 a.m. local time (0718 GMT), a fall of 1.36% from the closing price of $82.88 per barrel in the previous trading session.
American benchmark West Texas Intermediate (WTI) traded at $77.54 per barrel at the same time, a 1.42% decrease from the previous session that closed at $78.66 per barrel.
Concerns over oil demand in the US, the world’s largest oil consumer, fueled these prices drops.
The American Petroleum Institute’s data showed that US commercial crude oil stocks increased by around 2.5 million barrels last week, indicating weakening demand while putting downward pressure on prices.
The US Energy Information Administration (EIA) will release official inventory data later on Wednesday.
While optimism that the US Federal Reserve (Fed) will make its first interest rate cut this year continues, Fed officials stress caution against rushing to cut rates, heightening demand concerns in oil markets.
Although there is still hope that the US Federal Reserve (Fed) will lower interest rates for the first time this year, Fed officials are warning against cutting rates too quickly, which is raising oil demand concerns.
Other factors contributing to oil price volatility are supply risks due to Middle East tension and weak economic outlook in China, the world’s largest oil importer.
